State Sen. Diane Savino (D-North Shore/Brooklyn) isn't one to gloat, but she couldn't help but point out that she was right on the money a couple of months ago when she said the state budget was being held together with "spit, Scotch tape and Monopoly money" and was in danger of unraveling.

"It wasn't like I was gifted with a crystal ball," Ms. Savino tells us. "It's just that everybody thought the Monopoly money would last a little longer."

Ms. Savino said she hopes that Gov. David Paterson's economic address today gets everybody, Albany lawmakers included, to at least "pay attention" to the state's declining fiscal picture. The problem is being exacerbated in part by previous revenue estimates that are proving, as per Ms. Savino's prediction, to have been far too rosy.

Lawmakers, she said, must return to Albany and make modifications.

"If the Legislature does nothing, you could see huge cuts to agencies and layoffs," said Ms. Savino, who lauded Paterson for "coming out strong" on the issue.

The first area that lawmakers should look to trim back, she said: The $300 million to $400 million in capital items that were added late in the budget process.

"There are a million way we could save money," she said. "People will have to wait for these projects. We should service the debt we have. But the attitude has been, 'we'll just borrow money.'"

Ms. Savino said the state should also step up efforts to claim unpaid taxes from cigarettes sold on Indian reservations, which she said totals "hundreds of millions of dollars."

She also urged Paterson to take his message "on the campaign trail" by touring the state and demonstrating to residents how dire the budget situation is.